U.S. Weighs Safety-Reporting Penalties Against Fiat Chrysler

By Mike Spector and Eric Sylvers

U.S. regulators are weighing penalties against Fiat Chrysler Automobiles NV for safety-reporting lapses, said people familiar with the matter, only months after fining the auto maker for failures with recalls covering millions of vehicles.

The National Highway Traffic Safety Administration is considering imposing an approximate $70 million fine and other measures after the Italian-U.S. car company failed to report death, injury and other claims to the agency as required under federal law, one of the people said.

Regulators are aiming to reach a settlement with the company that imposes penalties before the end of the year, the people said. Other details of the possible penalties couldn’t be learned. A settlement isn’t yet finalized, and the terms could change.

Regulators in July uncovered a discrepancy in Fiat Chrysler’s so-called early warning reporting data. The company later said it uncovered significant underreporting of deaths, injuries and other information that must be submitted to regulators under U.S. law.

The failures resulted from technology issues that kept collected data from being sent to regulators, one of the people said. There isn’t yet evidence that the data uncovered any significant defects in Fiat Chrysler vehicles currently on the road.

The early-warning-reporting system requires auto makers to provide regulators with information each quarter about crashes resulting in deaths and injuries; claims of property damage; and consumer complaints to help the government identify possible safety problems. Honda Motor Co. received a $70 million fine at the end of last year for failing to submit reports detailing more than 1,700 death and injury claims for 11 years that in part related to rupture-prone air bags made by Takata Corp.

Write to Mike Spector at mike.spector@wsj.com and Eric Sylvers at eric.sylvers@wsj.com

Breaking the story

Mike Spector and Eric Sylvers broke the news that the National Highway Traffic Safety Administration was considering imposing a fine of around $70 million and other measures against Fiat Chrysler Automobiles NV for safety-reporting lapses. In July, regulators uncovered a discrepancy in Fiat Chrysler’s so-called early warning reporting data. The NHTSA announced the fine the day after Mike and Eric’s scoop.

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